Stabilization via currency board

Maute, Jutta

Stabilization via currency board

dc.contributor.author	Maute, Jutta	de
dc.date.accessioned	2024-04-08T08:43:51Z
dc.date.available	2024-04-08T08:43:51Z
dc.date.created	2010-04-20
dc.date.issued	2002
dc.description.abstract	The breakdown of the Argentine currency board in early 2002 produced a number of obituaries that often quite rashly declared the country?s monetary constitution since 1991 the main responsible for its recent near-catastrophic economic collapse. Contrary to such rather one-sided negative ascriptions to the currency board system, the intention of this paper is to give a comprehensive and balanced description of the currency board model in theory, as well as to name its functioning conditions under today?s economic and political conditions prevailing in developing and transforming countries. It will become clear that the success of a currency board in terms of lasting stabilization of an economy not only depends on its initial design (e.g. the choice of the anchor currency, of the exchange rate, the legal and institutional fixings) but also on an ongoing process of economic and institutional reform that extends from a general macroeconomic and especially public sector streamlining to banking sector reforms, product and labour marker deregulation, and to a general realignment of the economy towards export orientation and international competitiveness. The extent to which these reforms are tackled and completed decides over the degree to which the economy is able to absorb real shocks without incurring high economic and social adaptation costs, hence over the degree to which a country is able to benefit from the currency board?s strengths without falling victim to its potentially severe weaknesses. Along with some basic reflections about the concept and motivation of modern currency boards, sections 1-3 give a brief overview over the historical background of the currency board idea as well as of its implementation. Section 4 focuses on the constitutional elements of a currency board, while section 5 provides the core of the discussion of pros and cons of currency boards, depicting the system?s strengths and weaknesses as well as the conditions under which they materialize. Section 6 will discuss under which circumstances a currency board is a good choice for a country, and ask whether less strict stabilization policies might be able to deliver the hoped-for benefits less costly. Some problems related to the questions of duration and termination of currency boards are addressed in section 7. Finally, section 8 will give a brief exposition of the idea of dual currency boards as a theoretical extension of the currency board model which promises to eliminate one of the biggest immanent threats to a currency board.	en
dc.identifier.swb	32205463X
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/5340
dc.identifier.urn	urn:nbn:de:bsz:100-opus-4550
dc.language.iso	eng
dc.relation.ispartofseries	Schriftenreihe des Promotionsschwerpunkts Globalisierung und Beschäftigung; 18
dc.rights.license	publ-ohne-pod	en
dc.rights.license	publ-ohne-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_ubh.php
dc.subject.ddc	330
dc.subject.gnd	Currency board	en
dc.subject.gnd	Argentinien	de
dc.title	Stabilization via currency board	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.export.bibtex	@techreport{Maute2002, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/5340}, author = {Maute, Jutta}, title = {Stabilization via currency board}, year = {2002}, school = {Universität Hohenheim}, series = {Schriftenreihe des Promotionsschwerpunkts Globalisierung und Beschäftigung}, }
local.export.bibtexAuthor	Maute, Jutta
local.export.bibtexKey	Maute2002
local.export.bibtexType	@techreport
local.faculty.number	3	de
local.institute.number	520alt	de
local.opus.number	455
local.series.issueNumber	18
local.series.title	Schriftenreihe des Promotionsschwerpunkts Globalisierung und Beschäftigung
local.university	Universität Hohenheim	de
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.institute	Institut für Volkswirtschaftslehre (bis 2010)	de

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Schriftenreihe des Promotionsschwerpunkts Globalisierung und Beschäftigung